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Reorder Points Explained: The Fuel Light Analogy
The right reorder point gives replenishment time to arrive Most warehouses I've seen reorder one of two ways: someone notices the shelf is getting thin and fires off a PO, or they run out completely and spend a Tuesday morning calling three suppliers to find out who can ship today. Neither of those is a system. Both of them are exhausting. Here's the thing about your fuel light. It doesn't come on when you're on empty. It comes on when you have roughly 50 miles left — enough
2 min read


Inventory Planning Calculations: 10 Essential Formulas to Know
10 calculations every supply chain planner should know Most planners learned these numbers the hard way — standing at a dock door explaining to a buyer why their replenishment didn't land in time. Nobody hands you a cheat sheet on day one. You pick it up in pieces, usually after a miss. So here's the list, written the way I wish someone had handed it to me. Days of Supply: on-hand inventory divided by average daily demand. Simple, but I've seen teams carry 90 days of a slow-m
2 min read


Tariffs changed the math on how much inventory you should be sitting on
For about a decade, the prevailing wisdom was simple: carry less, move fast, trust your suppliers to replenish. Lean inventory was smart inventory. Then tariff rates on certain imported goods started jumping 15, 25, sometimes 145 percent in a single announcement cycle, and suddenly the cost of being lean wasn't theoretical anymore. It showed up on purchase orders. What that's done to inventory strategy is messy and real. Teams that were running 4-to-6 weeks of cover on key SK
2 min read


The True Cost of a Stockout vs. Overstock: A Financial Breakdown
Hey Warehouse and Operations Folk! Every inventory manager faces the same balancing act: too little stock means lost sales, too much means tied-up cash. But what does this actually cost your business in real dollars? Let's break down the true financial impact of both scenarios so you can make smarter stocking decisions. What is a Stockout? A stockout occurs when demand exceeds available inventory, leaving customers empty-handed. Key Features: • Lost sales revenue from i
3 min read
food distribution
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